RBI to constitute committee for review of ARC working
By IANS |
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New Delhi, March 31 (IANS) The three month moratorium on term loan repayments given by Reserve Bank of India will not result in any revenue loss for lending banks and NBFCs as borrowers opting for deferment will either have to extend their tenure els. Image Source: IANS News
Mumbai, April 7 : The Reserve Bank of India (RBI) has proposed to constitute a Committee to undertake a comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem.
The committee would recommend suitable measures for enabling ARCs to meet the growing requirements of the financial sector as cases of non performing assets (NPAs) rise and there is a need to reconstruct such assets. Already a new bad bank has been proposed in this year s Budget towards this goal.
Given the rise in the spread of the coronavirus (Covid-19) infection and imposition of fresh localised lockdowns, the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) on Wednesday decided to leave the key repo-rate unchanged at 4 per cent. It also maintained the policy stance as ‘accommodative’ to keep the liquidity taps running in the economy. “The recent surge in infections, however, imparts greater uncertainty to the outlook,” RBI governor Shaktikanta Das said today, setting the stage for the financial year of 2021-22 (FY22). April policy was the first bi-monthly MPC meeting of the new fiscal year. “Localised and regional lockdowns could dampen the recent improvement in demand conditions and delay the return of normalcy,” he said.
RBI to set up panel to undertake comprehensive review of ARCs
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Last Updated: Apr 07, 2021, 01:11 PM IST
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Synopsis
After enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act in 2002, regulatory guidelines for ARCs were issued in 2003 to enable development of this sector and to facilitate smooth functioning of these companies.
Agencies
In the latest Budget, Finance Minister Nirmala Sitharaman announced setting up of Asset Reconstruction Company and Asset Management Company to tackle stressed assets.
To facilitate smooth functioning of Asset Reconstruction Companies (ARCs), the Reserve Bank on Wednesday decided to set up a panel to undertake a comprehensive review of the working of such institutions. In the latest Budget, Finance Minister Nirmala Sitharaman announced setting up of Asset Reconstruction Company and Asset Management Company to tackle stressed assets.
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Mumbai, April 7
The Reserve Bank of India (RBI) on Wednesday kept key interest rates unchanged at record lows while pledging to buy Rs 1 lakh crore of government bonds this quarter to cap borrowing costs in a bid to support an economy facing a resurgence of the pandemic.
In the first monetary policy of the 2021-22 fiscal, the central bank stuck to its accommodative stance as long as necessary, amid concerns of rising infections that could derail the nascent economic recovery.
RBI s key lending rate, the repo rate, which was cut by a total of 115 basis points last year to soften the blow from the pandemic, will stay at 4 per cent while the reverse repo rate or the central bank s borrowing rate will be unchanged at 3.35 per cent.